Google is serious when it says it wants to make amends with news outlets that are subscription-based. The online search giant’s chief of news Richard Gingras said that the company plan is sharing revenues with news publishers who use the site’s new subscription tools.
Similar to the system is has for ads, it is using machine learning know-how and its vast collection of data from users to find possible new and renewing subscribers, as well as taking a part of the sales when people decide to take action.
However, not like ads, Google will not take as much as 30% of the money, as the terms are going to be much more generous, said Gingras.
The executive has rejected arguments Google is attempting to take control from its publishers similar to the new service for subscription with Facebook, which uses its Instant Articles that operate on its social media site.
It is clear Google is not yet ready to make an announcement with all the final details, and there is not any guarantee that all major publishers are going to accept the search giant’s terms.
However, what is evident is that Google has succeeded in coming a very long way since the days of when it feuded with publishers when the publishers accused the site of profiting off their work and did not give anything in return.
It has downplayed articles previously that were locked behind paywalls for only subscribers, unless the publisher has agreed to offer access that was free to a minimum of three articles daily, making them give potential revenue up only to remain relevant in results from searches.
Now, it is dropping its strict rule for profiting when someone decides a story is worth subscribing to the news site.
However, this situation might not be as easily remedied as Google says. Though, it is true Google will not have the level of control that Facebook does, it will still hold a considerable amount of sway.
Google after all might be the link to helping publications expand their subscribers. For example, publishers are not in the business of turning down a competitive advantage when it comes from the biggest and most dominant provider for internet search in the world.
Google might have a great deal of bargaining power simply due to the fact it holds an incredible reach.